Toro Energy Increases Uranium Resource Inventory with Lake Maitland Acquisition

Researched by Industrial Info Resources Australia (Perth, Australia)--Toro Energy (ASX:TOE) (Perth, Western Australia) recently acquired the $33.84 million (AUD$37 million) Lake Maitland uranium project, which will provide a strong boost to Toro's resource inventory, from Canadian uranium producer Mega Uranium Limited (TSX:MGA). The project is only 90 kilometres from Toro's proposed flagship uranium operation in Wiluna, which will be the first uranium production site in Western Australia.

The agreement will allow Mega to acquire 415 million fully paid, ordinary shares in Toro, which is equivalent to the 28% stake that Mega now has in Toro. The total inventory will increase Toro's resource base a further 42%.

Dr. Vanessa Guthrie, the managing director of Toro, said that the agreement was an excellent opportunity for the company. "The deal not only puts Toro at the forefront of Australia's new uranium development sector at a time when there will be a supply squeeze from 2015 onward, but it adds bench strength to our share register and our project development endeavours through the strategic relationship with Mega."

The proximity of the two projects will be highly beneficial for Toro when it amalgamates them. "Our plan will be to eventually integrate both projects," Guthrie said. As an integrated project, the total ore that can be processed will be in excess of 1.3 million tonnes per annum (Mtpa).

The sale includes the granted mining lease, three prospecting licences, eight exploration licences and two exploration lease applications.

In addition to the most recent activity, Toro has invested in the surrounding deposits that include Millipede, Nowthanna, Dawson, Hinkler and Firestake. These deposits all are in close proximity to the flagship operations at the Wiluna project. The company continues to work toward further off-take agreements and other project-financing opportunities that are being explored from international investment companies.

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